Secrecy jurisdictions are territories, including cities, states/provinces and countries that encourage the relocation of otherwise foreign economic and financial transactions through strong privacy protection rules. These jurisdictions ensure that the identity of those relocating their money through them cannot be disclosed. This often undermines legislation and regulation of another jurisdiction. Many secrecy jurisdictions are also tax havens.
Why it matters
All jurisdictions should ensure high standards of transparency, accountability and integrity, and take part in multilateral information sharing and mutual legal assistance schemes. All jurisdictions should establish mandatory, public registers that disclose the beneficial ownership of trust funds and companies.
Additional Information: Secrecy jurisdiction
- Transparency International, Policy brief 02/2014: Ending secrecy to end impunity: Tracing the beneficial owner
- Transparency International, Major economies move on money laundering, but what about the Cayman Islands? (blog post, Jan 2015)